OSAGO paper policies completely removed from circulation

By Aygul Salmanova

The term of the last contracts on the service of obligatory civil liability insurance of vehicles (OSAGO) concluded on paper policies expired on October 31, the Compulsory Insurance Bureau (ISB) of Azerbaijan announced on Wednesday.

“On Tuesday, October 31 at 23:59, the insurance coverage period for the last contracts of OSAGO concluded on paper was expired. Thus, contracts of OSAGO on paper were completely withdrawn from circulation,” the ISB stated.

Since November 1, 2016 in Azerbaijan, all MTPL contracts are registered exclusively in the form of an electronic document. The contracts concluded on paper before this date, were valid until the expiration date.

The Compulsory Insurance Bureau was established as a union of legal entities to protect interests of insured persons and third parties who suffer damages and losses, as well as for stabilization and developing the system of compulsory insurance and fulfillment of duties prescribed by the law.

The Bureau participants include 16 companies, while 13 of them have the right to sell compulsory third party liability insurance policies.

OSAGO is compulsory by law for anyone, who owns a vehicle. Driver must have the minimum OSAGO insurance (which must be carried all times while driving) in order to drive any vehicle in Azerbaijan.

Under the law “On compulsory types of insurance”, the basic cost of an insurance policy on OSAGO is 50 manats ($30.6), which applies to vehicles with an engine capacity of 1,500 cubic centimeters. The price increases from a coefficient of 1.5 to 5 in engines that are 5,000 cubic centimeters or more.

Currently, 22 insurance companies operate in Azerbaijan. Of these, the following 13 companies are members of the Bureau: At??gah, Standard Insurance, AtaInsurance, Xalq S?gorta, PA?A S??orta, AXA MBASK, AzS??orta, State Insurance Commercial Company AR, Meqa S??orta, Ip?k Yolu S??orta, Az?rbaycan S?naye S??orta, Qala S??orta, Günay S??orta.